UK opens second capacity market auction

An auction to secure extra capacity to ensure there is enough electricity supply to meet peak demand is now open. The second Capacity Market auction will secure extra power for […]

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By Priyanka Shrestha

An auction to secure extra capacity to ensure there is enough electricity supply to meet peak demand is now open.

The second Capacity Market auction will secure extra power for 2019/20.

National Grid, which is responsible for running the auction, is allocating 44.7GW of capacity.

Both established and emerging players in the market, representing more than 57GW of capacity, are bidding, according to DECC.

It is open to generators, Demand Side Response providers and for the first time to interconnectors, which was announced last year. They will be paid to provide electricity at short notice when demand is high.

The auction is designed to deliver the power at the lowest price.

Energy Minister Andrea Leadsom said: “Our number one priority is to ensure that hardworking families and businesses have access to secure, affordable energy supplies they can rely on.

“The Capacity Market is a key part of our electricity market reform. The competition helps drive down costs while ensuring we have enough generation power the nation. It also gets the best out of our existing power stations as we increase the amount of electricity we get from low carbon technologies.”

Yesterday National Grid announced it has secured an extra 3.58GW of electricity to cover potential power demand for winter 16/17.